Asian markets may see flat start, dollar flat

Domestic stocks are likely to see a flat to positive start, as Asian peers were trading mostly higher and headed for a second quarterly gain on Friday. Oil prices went up while the dollar was flat after data showed German inflation eased significantly in March, even though it came in higher than expectations. On Wednesday, the Nifty fell below the resistance level of 17,250. The critical short-term moving average, the 50 DMA 17,571 is well above the current value of the index. The on-going trend may continue until there is a decisive breakout above 17,250, according to analysts.

A decisive breakout above 17,250 may take the index to the 17,500 17,600 zone. On the lower end, 16,900 may continue to act as crucial support, said Rupak De of LKP Securities.

Nifty futures on the Singapore Exchange traded 10 points, or 0.05 per cent, lower at 17,249. The domestic market is expected to have a flat start on Friday, with 50 hinting at a flat start.

Asian stocks advanced on Friday after the last session of March. The broadest index of Asia-Pacific shares outside Japan was up 1.17 per cent. Japan's Nikkei increased by 0.77 per cent; China's Shanghai Composite increased by 0.38 per cent, Hong Kong's Hang Seng surged 1.98 per cent and Korea's Kospi gained 1.06 per cent.

Wall Street was boosted overnight by gains in technology related shares, although regional bank shares fell after Treasury Secretary Janet Yellen said banking regulation and supervisory rules need to be re-examined. Dow Jones went up 0.4 per cent, the S&P 500 index gained 0.6 per cent, while the Nasdaq Composite was 0.7 per cent higher.

Oil prices were a bit higher on Friday, but were still down more than 3 per cent for the month. The US crude futures moved up to $74.42 per barrel, while Brent crude futures rose 0.2 per cent to $79.42 per barrel, according to Reuters. The dollar index was flat at 102 15 on the other hand. The US dollar has fallen by 2.6 per cent against its peers in March, with the euro going up 3 per cent to $1.0903 and the yen gaining 2.2 per cent to 133.3 per dollar amid safe-haven flows into the Japanese currency.

National Stock Exchange NSE has a ban on F&O stock for Friday, March 31. Derivative contracts in a security are banned when it crosses 95 per cent of the market-wide position limit MWPL No new positions can be created in the derivative contracts of the security. The prohibition is lifted when the open interest in the stock drops below 80 per cent of the MWPL across exchanges.

Provisional data available with NSE shows that FPIs were net buyers of domestic stocks to the tune of 1,245. On Wednesday, 39 crore were made. Domestic institutional investors DIIs have net buyers of equities to the tune of 822.99 crore.

The rupee was lower by 18 paise to close at 82.34 against the US dollar on Wednesday, amid a rise in crude prices and a firm dollar in the overseas market.

Note: With inputs from PTI, Reuters and other agencies.